Google threatens to withdraw from Australia

The Legal Digest
3 min readJan 27, 2021

Australia has proposed legislation that will require Google, Facebook and other tech giants to pay a fee to media outlets in an attempt to restore independent journalism.

Google has around 63,000 searches per second and has become a way of life for most people revolutionising the way we obtain information and stay connected with the rest of the world.

Proposed legislation

The proposals would require Google to negotiate fees with independent platforms in order to share news content online. Unsurprisingly, this has not been well received by Google arguing that it would not be economically viable for them to negotiate with each independent news outlet in the country. The reasons for Australia introducing these proposals arguably are largely due to the duopoly dominating the online market and the re-distribution of news content they publish for free. The Australian government aims to create fairness and a level playing field for independent journalists.

Google has launched action against introducing this law and threatened to withdraw from Australia meaning that Australians could be without Google or Facebook.

Response to the proposals

In addition to campaigning against the new law Google plans to launch its own product, News Showcase, a local media outlet contracted to provide articles for Google as it fight laws on content payments and in a bid to remain able to share news content in Australia. This product will still mean that it has to negotiate deals with publishers that agree to use News Showcase which may not be suitable for all publishers but is an attempt to run its own deals prior to the enactment of the new Australian law. Google has also threatened to block access to content if Australia goes ahead with the proposals causing disruption to online users and businesses that rely on it to reach their customers.

What this means for journalists, democracy and competition law

For journalists, this means a return to advertising revenue and income from news content that has dramatically dropped in recent years. The proposed law will mean that journalists can return to potentially making a living out of sharing their content. However, Google contributes to helping information reach customers and saves people time and not having access (this could include Gmail and Google Maps) will be a concern for online users who will likely wonder whether they can get by without these services.

The new law will be viewed as a bold move by Australia which no one has attempted before and could set an international precedent. On the other hand it means that we could for the first time in a long time be cut off from events that take place in Australia putting us at risk of being disconnected in a time when public interest in journalism and democracy are important amidst the rise in distribution of fake news.

Reports about Google blocking news content in their retaliation to the proposed laws, will for anyone that cares about democracy find this worrying in its powers to block access to information available online but also deciding what information should not be made available. These tactics to prevent the proposals shows their concerns with the precedent this could set across the world and puts Google in a position where they could lose their 93% market share of the search engine market.

In a time where international travel is restricted and people are being asked to stay at home to prevent the spread of Covid-19 staying connected and having information available to us has never been more important.

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The Legal Digest

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